Arizona wants Taiwan’s investors to think beyond chips

Arizona officials are actively encouraging Taiwanese investors to explore business opportunities beyond the semiconductor industry, highlighting the broader economic potential of the state as it continues to benefit from the presence of Taiwan Semiconductor Manufacturing Company (TSMC). In July, during a gathering in Taipei attended by approximately 100 participants, Steve Hsu, head of the Arizona Commerce Authority’s Taiwan office, emphasized the rapid growth and expansion of Arizona's economy driven by TSMC’s investments. He urged Taiwanese property developers and family offices to consider investing in supporting infrastructure such as warehouses, logistics centers, hotels, commercial buildings, and science parks, which are essential for sustaining the growing network of suppliers that have followed TSMC to the state. The TSMC effect has transformed Arizona into a major hub for semiconductor manufacturing, with the company announcing its initial plans to build fabrication plants in the state in 2020. These projects have since grown significantly, with TSMC recently announcing an additional $100 billion investment, raising its total planned U.S. spending to $265 billion across 12 facilities. As of now, at least 25 Taiwanese suppliers have established operations in the United States, following their largest client overseas. This shift has led to a substantial increase in trade between Arizona and Taiwan, which rose from $4.9 billion in 2024 to $21.2 billion in 2025. Last year, Taiwan became Arizona’s second-largest trading partner by volume, behind Mexico, but the top partner by trading value. Arizona’s growing economic ties with Taiwan reflect broader U.S. efforts to reshore semiconductor production and reduce reliance on global supply chains. Driven by tariffs and strategic initiatives aimed at strengthening domestic manufacturing capabilities, TSMC has steadily expanded its footprint in the state. This has created a ripple effect, drawing other businesses and investors seeking to capitalize on the opportunities presented by the evolving landscape. During the conference, Hsu stressed that the investment opportunities in Arizona extend beyond technology firms. He encouraged participation from sectors such as hospitality, family offices, and others, emphasizing that ignoring non-tech investment prospects could result in missed opportunities due to rising land values. While many attendees expressed interest in exploring these possibilities, some remained cautious. A representative from a Taiwanese real estate company noted that smaller firms might find it challenging to enter the market on a large scale, though personal considerations, such as the education of children studying in Arizona, motivated others to learn more about the long-term prospects for Taiwanese individuals living in the state. The push for diversified investment highlights Arizona’s ambition to leverage its relationship with Taiwan not only through high-tech industries but also through broader economic collaboration. As the state continues to attract both direct and indirect investments from the island nation, the focus on supporting infrastructure and diverse sectors underscores a strategic effort to ensure sustained growth and resilience in the region’s economy.